The African Farmers’ Association of South Africa (AFASA) Free State Province is calling for urgent national intervention after farmers applying for funding through the Land Bank Blended Finance Scheme were abandoned in the eleventh hour, with some farmers reportedly informed that the allocation has been depleted.
According to AFASA some farmers had already passed initial assessments, submitted business plans and provided the required compliance documents before being informed that funding was no longer available. Others have reportedly received letters stating that they do not qualify due to insufficient collateral and other restrictive requirements.
The association said the crisis comes at the start of the planting season, after farmers had incurred significant costs preparing their farming operations.
Both AFSA Free State Chairperson of Commodity Chairs Realeboha Mokhethi-Lekitlane and AFASA Free State Grain Chairperson Setjhaba Ramabenyane have expressed their disappointment in the matter.
“AFASA is demanding an urgent meeting with the Land Bank, National Treasury, the Departments of Agriculture and Land Reform and Rural Development, as well as organised farmer formations. It is also calling for transparency on the scheme’s total allocation, a breakdown of applications from 2024 to 2026, clarity on the reported depletion of funds and disclosure of the budget allocated to the Free State” said the association in a statement.
AFASA further wants additional funding urgently allocated to qualifying farmers before the planting window closes, and warned that if farmers unable to plant could face loan arrears and damaged credit records, while job losses, declining agricultural production and a setback in the commercialisation of black farmers could follow.
AFASA Free State Province demands:
1. An urgent meeting involving the Land Bank, National Treasury, the Department of Agriculture, the Department of Land Reform and Rural Development, and organised farmer formations.
2. Immediate protection of applications that have already passed the preliminary assessment stages.
3. Full disclosure of the total allocation made to the Blended Finance Scheme and the amounts already. committed or disbursed.
4. A provincial and district breakdown of all applications received, approved, declined and funded from 2024 to 2026.
5. Clear reasons for the reported depletion of funding, an explanation of how beneficiaries were selected, and full disclosure of the budget allocated specifically to the Free State Province.
6. The urgent allocation of additional funding to rescue qualifying farmers before the planting window closes.
7. Protection and continued production support for existing Land Bank clients who must plant to generate income and service their loans.
8. Reform of the assessment criteria so that the Land Bank fulfils its developmental mandate while maintaining responsible lending standards.
The association futher said planting season cannot be postponed while institutions debate responsibility. Government and the Land Bank must act immediately to protect farmers, agricultural production, jobs and rural livelihoods.
